Pre Settlement Lawsuit Funding: August 2017

Monday, 28 August 2017

Pre Settlement Funding: Help When You Need It The Most

Ever hear about pre settlement funding? Neither had I, but the simple fact is it's an answer -albeit one you have to pay for- to the issues that arise immediately following an accident and waiting for the outcome of a lawsuit.

It's a common scenario: You have been involved in an accident. You have had to take sick leave from work. You have insurance, but it barely covers loss in wages, let alone all the medical bills and extra utilities that are racking up while you convalesce.

The last thing you need when suffering an injury is monetary worries, and stress it proven to exacerbate such an issue. You need peace of mind in order to recover fully.

So what are the benefits of funding for lawsuit? They are actually more straightforward than you may think. You might expect to have to wait for a certain period of time before you receive funding, yet this isn't the case: your money is paid immediately after the agreement is made with a reputable pre settlement funding agency.

You can use this money to pay any bills outstanding, mortgage repayments, or to safeguard yourself should an emergency arise while you are in an injured state. It can pay your child's college fees while you may otherwise not have been in a position to do so.

There will always be medical expenses where an injury is concerned, and we all are well aware that these can be astronomically expensive. A lump-sum payout of lawsuit cash will subsidize these costs or -as is often the case- pay them in full, leaving you to concentrate on recuperation.

The average citizen is $8,000 in negative equity, not including mortgage repayments or home loans. How many of us ever consider what would happen if we weren't able to meet these repayments? A debilitating accident could stop you in your tracks and leave the debt recovery agents knocking at your door. Settlement funding would prevent this from ever happening. Your credit cards would remain intact. There are legal benefits to having a lump sum of money when fighting for a lawsuit.

Who is Eligible for Pre-Settlement Funding?

Pre-settlement funding is a way of financing a lawsuit or receiving money from a legal case before it is concluded. It is not for everyone. There are several requirements that must be met before a lawsuit financing company will consider an advance. After that, each case is determined on an individual basis.

Plaintiff

The person suing in a case in lawsuit settlement funding is usually called the plaintiff. The person receiving the financing must be a plaintiff in a civil lawsuit. The reason for this is that defendants do not receive money from a legal action and would have no additional means to pay back the advance. When a plaintiff wins a case, the award in damages is monetary.

Favorable Case

Suing someone does not mean a person will automatically get money? Many factors go into a lawsuit's outcome, such as what type of suit it is, what happened to the person and whether or not the defendant is likely liable. If the plaintiff does not have a reasonable chance of winning the case, the finance company will probably not advance the money. If the plaintiff does not win the case, most companies do not require the money to be paid back. Personal injury suits are usually considered favorable, as are discrimination and class-action cases. The pre settlementlawsuit funding company will generally speak to the plaintiff and their attorney before making a determination about advancing money. Additional research and information is also usually compiled before coming to a final decision.

Settlement

Some cases do not go to trial. Sometimes, the two parties reach an agreement before the trial begins. This is called a settlement. It is legally binding and involves a payment from the defendant to the plaintiff. The sum is usually less than what the person is asking for in the lawsuit. It may be worthwhile for the parties to settle the case simply to halt the legal fees and expenses associated with a trial. Expert witnesses, filing paperwork and research all cost money. Settling before a trial reduces how much both sides must spend.

Sunday, 13 August 2017

Lawsuit Cash Advances - Things to Consider

In recent years people who have been involved in personal injury accidents have discovered that they can receive a lawsuit cash advance against the proceeds they ultimately receive from a personal injury accident settlement. For the person who is injured enough from an accident so as to be unable to work and earn a living, a lawsuit cash advance can provide a very timely financial solution to the cash flow problems the person may currently face. Nevertheless it is always wise to know beforehand what a person is getting them into before they apply for a lawsuit cash advance.

A lawsuit cash advance is a participation in a personal injury legal settlement but is not a loan and the company that provides the lawsuit cash advance receives nothing for whatever reason doesn't receive a cash settlement from their case, if the injured victim who receives the lawsuit cash advances they owe nothing . This means that, the provider of the lawsuit cash advance like any underwriter must determine what the likelihood is of ultimately receiving payment for the cash they advance and charge accordingly. Normal interest rates will not apply because of the nature of the lawsuit cash advance. So, for the lawsuit cash advance than a traditional lender would the provider wills most likely charge more.

Significantly the fees charged for lawsuit cash advances can vary. Typical fees for medical malpractice cases 5.5% per month and for automotive cases are 3.0% per month. For some companies to charge a low entry fee to get business through the door nevertheless it is not uncommon. To the personal injury accident victim they then charge additional, hidden fees.

Within 24-48 hours, many companies say they will provide a funding for lawsuit cash advance but are subject to the extent of the documentation required from the personal injury accident victim along with other factors and actual application times can vary greatly. And it is important to realize that to compensate for their less than stringent underwriting requirements a company that approves an application too quickly may be charging the client through the roof.

Lawsuit Settlement Funding Is Beneficial

There are so many people worrying about how they are going to make ends meet. They are borrowing money off of loved ones and taking financial risks that they should not be taking. With lawsuit settlement funding, it is not necessary to have to take risks that can cause a great deal of harm to a person in the long run.

The Fees

There is no question that there are fees involved in lawsuit settlement funding and they are not the cheapest, but they are necessary. In fact, there are fees with practically every service a person takes advantage of; lawsuit settlement funding is another one of those services, but it is a service that is a matter of life for many individuals. They are able to keep from losing their homes, their cars, and other financed items. Individuals are also able to keep their utilities on and credit card bills paid. One of the most significant costs, though, is the medical bills related to the injury. The medical bills are going to keep piling up and they will eventually find their way onto your credit report if they sit for too long. Lawsuit settlement funding can pay those bills so you are not harassed and so your credit rating is not at risk.

Non-Recourse Loans

These loans are called "non-recourse loans." What this means is you don't have to pay the loan back if you don't receive your settlement. This is why there are fees and where the risk comes in. The funding company talks to your lawyer about your case and an estimated settlement amount is reached. The funding company then decides whether or not to provide the funding based upon the information they have received. If they do, that is a risk they take, knowing it is possible for the pre settlement lawsuit funding to not be awarded. Nonetheless, a great deal of judgment is used by an attorney before they take a case and this is something that funding companies do put trust into. They also use their own judgment. So you don't have to be completely destitute when you need a financial solution while awaiting the receipt of your settlement.